Gold price forecast today and in the future

The gold market remains resilient as it continues to maintain solid support above $1,950 an ounce even as the US Federal Reserve unleashes its strongest tightening cycle in more than 40 years.

The precious metal is well positioned to raise records as the U.S. central bank moves closer to gains, said Steve Land, portfolio manager of Franklin Templeton's Franklin Gold and Precious Metals Fund. Finally interest. As investors' renewed demand, he added, is the key to bringing gold back to record highs above $2,000 an ounce.

Explaining land, slowing economic growth will continue to fuel recession fears in financial markets, which in turn will support investment demand in gold. Comments on the optimism of the Golden Land come as the US Federal Reserve (Fed) begins its two-day monetary policy meeting. The market downturn is certain that the US Central Bank will raise interest rates by 25 basis points after this meeting. At the same time, there are those who expect this could be the last rate hike in the strongest tightening cycle in four this fall.

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Land said that, whether this should be the last rate hike or not, the Fed is clearly nearing the end of its game. Although US economic growth is relatively stable in the first half of 2023, the expert noted that it will take time for the economy to feel the impact of monetary policies from the central bank.

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He added that it is not surprising that investment demand in gold has slowed for most of 2023 as a strong economy has supported the stock market. In the current environment, a small change in investor demand will be enough to push prices back to $2,000 an ounce.

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Nicky Shiels, metals strategist at MKS PAMP, said she sees potential in gold because of the Fed's inability to support the dollar's monetary policy.

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However, if the price falls back below the 50-day moving average around $1,947 per ounce, bears could target $1,940 and $1,932 an ounce.

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Many analysts also recommend investors ignore the short-term volatility of gold and focus on the limit scene. While usage has fallen sharply from a 40-year high on record in several years, the Fed is unlikely to bring it back to the 2% standard. Experts emphasized that gold is still an attractive delay prevention tool.

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However, the scarcity of supply could push commodity prices higher and the Fed is unlikely to achieve its target of bringing inflation to 2%.

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In an interview with Kitco News, Steve Land, portfolio manager at Franklin Templeton's Franklin Gold and Precious Metals Fund, said renewed investor demand was key to gold pushing back against record highs across the world. $2,000/ounce.

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The US dollar and US Treasury yields rose to two-week highs, making bullion more expensive for buyers currently holding other currencies.

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After Wednesday's widely anticipated 25 basis point hike, there's about a 60 percent chance the Fed will keep rates unchanged through 2024, according to the CME FedWatch tool.

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Euro-denominated gold hit a one-month high earlier in the session on hopes that economic stimulus from top Chinese bullion buyers could boost demand.

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Gold consumption by key buyers grew 16% year-on-year in the first half of 2023, with jewelry consumption up nearly 15%.

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“After four days of declines, I suspect gold will hold above $1,950 an ounce and attempt a drop to $1,960 to $1,965 an ounce based on that,” said Matt Simpson, senior market analyst at City Index. on technology today”.

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Tim Waterer, head of market analysis at KCM Trade, said: “If Chairman Powell suggests that interest rates may have peaked, this would signal good news for prices. Gold has rallied in recent weeks.”

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Analysts note that growing rifts in consumption are also supporting gold prices. The report notes that personal income has not kept pace with consumption. Specifically, personal income rose 0.3 percent in June, compared with a revised 0.5 percent gain in May. The data fell short of expectations as economists expected a gain of zero. 5%. .